The International Finance Corporation (IFC), a member of the World Bank Group, has committed Rs33 billion to support Pakistan’s agricultural sector, marking its first-ever local currency investment in the country.
The financing—equivalent to approximately $120 million—will be channelled through a private commercial bank to Engro Fertilizers Limited, according to an official statement.
The support will be extended in the form of an unfunded partial credit guarantee, aimed at mobilising local capital, strengthening agricultural supply chains, and enhancing food security across Pakistan.
The initiative will also be backed by the IFC Canada Facility’s First Loss Counter Guarantee, expanding access to long-term financing in both local and foreign currencies. The funds are intended to ensure the uninterrupted supply of urea and other fertilisers to meet national demand, while supporting farmers’ programmes and broader agricultural activities.
Agriculture remains a cornerstone of Pakistan’s economy, contributing 24% to GDP, 70% to exports, and providing employment to 40% of the workforce, underscoring the importance of the IFC’s investment for long-term economic stability and rural development.
Digital financing for farmers
Earlier, the federal government launched the Zarkhez mobile application to simplify access to agricultural loans for farmers.
Under the Zarkhez initiative, farmers can obtain loans of up to Rs1 million through a streamlined digital process, allowing applications to be submitted from home without visiting bank branches or government offices.
The platform also enables farmers to purchase fertilisers, seeds and agricultural medicines from banks’ authorised outlets. In addition, the app provides access to diesel for farming needs, along with guidance on crop selection, water availability and fertiliser usage.
The combined public and private sector initiatives aim to modernise Pakistan’s agricultural financing ecosystem and improve productivity across the farming sector.
